Ethereum Eyes $3,000 Amid Weakening Selling Pressure: Can Bullish On-Chain Metrics Hold ETH Price?

Ethereum experienced a strong start to November, triggered by a $500 million influx into the cryptocurrency market following Donald Trump’s election win. The recent rise in Ethereum’s price has led analysts to speculate about the start of a bull run. This viewpoint is supported by the rise in various on-chain metrics and the announcement of the Mekong testnet.

Ethereum is Set for Further Surges

Since November 6, Ether (ETH) has climbed over 9%, as per data from TradingView. This is the first time Ether has surpassed the $2,800 mark since August, surprising some traders with its sharp increase.

It’s worth noting that over the same 24-hour period, ETH has outperformed both BTC and SOL. Additionally, key on-chain metrics have reached new peaks during the last day. Consequently, many analysts now believe that Ethereum could see further upward movements in the coming days.

Data from IntoTheBlock states that the whale transaction metric surged exponentially. In the last five days, whales accumulated Ethereum heavily as the last transaction volume surged from the low of $2.5 billion to a recent high of $8.7 billion.

Amid Ethereum’s surge, the Ethereum Foundation has launched the Mekong Testnet, a temporary setup to test new features for the upcoming Pectra upgrade. This has further strengthened the buying demand.

There is a noteworthy shift as the Netflow of ETH on exchanges is declining, suggesting that holders are accumulating rather than selling. Data shows that the Netflow decreased from a high of 71.7K ETH to just 4.7K ETH, indicating that more ETH is being withdrawn than deposited as its price rises. This trend typically shows a positive sentiment in the market, as it implies holders are expecting higher prices in the future.

However, there’s a rising concern as three Ethereum holders sold large amounts of ETH following price increases. One whale transferred 25,000 ETH to Kraken, while another sold 8,701 ETH. Another whale began selling 12,001 ETH worth $34.1 million, creating a rejection in the ETH price chart.

What’s Next for ETH Price?

Ether price broke above multiple resistance channels and reached a high near $2,900. However, this level attracted massive selling interest, plunging the price toward immediate Fib channels. As of writing, ETH price trades at $2,842, surging over 4% in the last 24 hours. 

The bulls are currently aiming for a strong defense as ETH aims for a retest of the rejected level. The ETH/USDT pair might climb to the resistance line and possibly reach $2,920, where heavy selling is expected. If buyers can break through this level, the pair could surge towards the $3,000-$3,300 resistance zone.

However, if the price drops from the resistance line, it suggests that the pair might continue to trade within a bearish zone. A drop below EMA20 might give bears the upper hand, sending the price below $2,500.